Supply Chain weekly wrap-up 9/26/14 – 10/2/14

Major UK firms, like Argos, Boots, Marks & Spencer, Carillion and Tesco, signed a WWF Forest Campaign pledge to purchase 100% timber from only sustainable sources by 2020. Currently, only less than 50 per cent of the value of timber products, which are coming into the EU, are coming from legally logged sources. This indicates an existence of loopholes in the EU Timber Regulations, which needs to be closed by changing the rules. Alongside the aforementioned companies, other signatories of the pledge include: Homebase, Redrow homes, Travis Perkins, Kingfisher and Kimberly Clark, which are all aiming to put pressure on the government to take action and implement policy changes in 2015.

On September 30th, Natural Resources Minister, Carl Sargeant, announced a new Food Manufacturing, Service and Retail Sector plan, which aims to eliminate waste in food and drink supply chains and encourages recycling. According to the Waste & Resources Action Programme (WRAP), a tonne of food and drink waste costs £950 for food manufacturers, which increases to £1,200 per tonne for retailers. The food sector plan encourages large companies to collaborate, support their suppliers and SMEs in waste reduction, increase recycling and implement innovations, which would prevent waste. Actions taken to reduce the amount of waste in food and drink supply chains could save companies’ resources and at the same time benefit the environment.

According to a report from LCP Consulting, retailers which implemented the omni-channel approach have seen a 10 – 20% increase in sales over the last 12 months. The omni-channel approach denotes a seamless customer sales experience, regardless of the chosen shopping channel (stores, television, mobile devices, computers, catalogue, etc.). This gives retailers a chance to attract more customers and set their expectations, which have to be met through effective functions of back-end infrastructure. By solely showcasing high front-end capability, without having the necessary back-end of the supply chain, retailers set themselves up for failure. According to the research, 37% of UK retailers received a higher number of complaints over the last year, as customers’ increased expectations were not met. LCP research highlighted the need for retailers to evaluate their market position and choose the best model for adapting to the dynamic retail marketplace.